US shares were witnessing a wave of rise that added $ 14 trillion to its market value and paid indicators to record levels to approach a decisive turning point next week, with investors expecting the Federal Reserve to lower the interest rates in a long, financial meeting. The S&P 500 (S&P 500) increased by 32% of its lowest level in April, powered by interests that the ‘federal’ borrowing costs will lower more than once this year, while X/interest is seen by 25 basis points on Wednesday. Optimistic traders can have what they are historically based: The index rose by on average by 15% after a year after the resumption of discounts to a hiatus of six months or longer, according to the data of “Ned Davis Reserve”, dating from the 1970s. This is compared to a 12% increase after the first year of discounts in a regular facilitation cycle. The velocity of the Federal Reserve is focused on whether the ‘federal’ is moving quickly to avoid a sharp economic decline that can weaken justifications for the continued climbing of shares. Although growth is still relatively strong and good businesses’ profits, disturbing signals have emerged in recent data, including a job report that showed the high unemployment to the highest level since 2021. Investors take on a set of strategies to take advantage of the expected transformation, from the purchase of shares of small businesses to complying with the shares of huge businesses that led to the markets rising. “We are in a unique moment. The great unknown for investors is the extent of slowdown in the economy and the amount of federal reduction in interest … it’s complicated.” With the issuance of a statement to the meeting at two o’clock in the afternoon Wednesday, investors will monitor any changes in the updated quarterly expectations, known as the ‘point scheme’, and they will investigate the statements of federal President Jerome Powell half an hour later. 150 basis points during the current year, the contract contracts fully expect a decrease in the interests of no less than a quarter of a percentage point, while the facilitation cycle is expected to release in December. In the midst of expectations of a total discount of approximately 150 basis points during the next year. Any similar position on the federal will be an encouraging sign for the optimistic investors, who mainly bet on a gradual path to facilitation that prevents the economy from slipping to stagnation. Powell wins from “Jackson Hall” to a single rate of interest rate arrows. The stock sectors can determine the strength of the economy and the speed of reducing the ‘federal’ for borrowing costs, investor preferences for stocks, as we take history as proof. In four previous facilitation courses in which federal interest reduced only once or twice to a stop, the economy was generally strong and periodic sectors such as finance and industries excelled, according to data collected by Rob Anderson, the US sectors strategy in “Ned Davis Research”. As for the facilitation courses that needed four or more discounts, the economy was weaker and investors went to defense sectors such as healthcare and basic commodities that achieved the highest average returns. “This market depends on three factors: how fast the federal reduction in interest and the amount of discounts, or the artificial intelligence trade will continue to pay growth, and whether customs duties will attract inflation,” says Stewart Katz, executive director of investment at Robertson Stephens. The ‘reassurance’ indicator of the prices of US producers. Katz is of the opinion that the sudden fall in the prices of US producers in August contributed to calming the concern that stubborn inflation will prevent the federal interest rates from being reduced violently in the coming months. And pointed out that he buys shares for small businesses, which are usually taxed with debt and benefits from low interest. The Russell 2000 (Russell 2000) index for small businesses increased by about 7.5% this year, compared to about 12% of the S&B 500 index. US producers price index supports interest reduction and investors have suspended similar hope of Powell’s remarks, which last month said that the effects of inflation due to Trump’s commercial war ‘will be’ relatively short -term ‘and expect’ unafforded price ‘to change. On the other hand, Almeida is working on ‘X -way Blancing Network’ on the shares of medium -sized companies, explaining that this group, despite its neglect, has historically exceeded a year after the start of the interest reduction cycle. The shares of the financial and industrial sectors that can benefit from the reduction of borrowing costs are preferred. Ensure a ‘defensive’ strategy. In terms of the Balfas of “Goalvest Advisory”, “Inviteia”, “Amazon” and “Alphabet”, in a bet that the gradual economic slowdown will not disrupt the growth of corporate profits. However, the rise of indicators that the economy is delaying faster than expected can force investors to abandon these bets in favor of more defense options. For example, the sectors of the maintenance and consumer goods of the “S&B 500” achieved an average return of about 20% during the courses in which the federal had to deepen interest in depth, according to the data of “Ned Davis Reservation”. Unfortunately, the Powell idea was lost on the market. Catz of Robertson Stevens said: “If the growth delays, the federal will reduce interest, but if the economy grows strikingly, the risk of stagnation will increase.
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